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Can a firm’s average variable costs be falling if they are less than the firm’s marginal c

Can a firm’s average variable costs be falling if they are less than the firm’s marginal costs? Explain.

4.              Can a firm’s average cost be rising if it is greater than the firm’s marginal cost? Explain.

5.              If a firm is operating in the range of diseconomies of scale, and if it is currently at the minimum point of its
              short-run average total cost curve, explain what action it can take to reduce its costs, if it does not want to
              change the quantity of output that it is producing.

6.              If a firm is operating in the range of economies of scale, and if it is currently at the minimum point of its
              short-run average total cost curve, explain what action it can take to reduce its costs, if it does not want to
              change the quantity of output that it is producing.

7.              Do a firm’s fixed costs have to be larger than its variable costs? Support your answer with an example.

Dec 10 2019 View more View Less

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